What is the issuance amount of NKN coins?

The total issuance amount of NKN coins is 1 billion, with an initial distribution of 26.35% through public sale and the remaining locked up with a staggered release schedule.

Dec 01, 2024 at 08:36 am

What is the Issuance Amount of NKN Coins?

Understanding NKN Issuance and Distribution

The issuance amount of NKN coins refers to the total supply of NKN tokens in the market. NKN is a decentralized, open-source blockchain project that aims to provide a shared network infrastructure for Web 3.0 applications. Its native cryptocurrency, NKN, serves as a means of payment and governance within the NKN ecosystem.

Key Considerations for NKN Coin Issuance

• Total Supply: 1,000,000,000 NKN
• Initial Distribution: 263,456,483 NKN (26.35%)
• Public Sale: 736,543,517 NKN (73.65%)

Initial Coin Distribution (ICO)

The initial coin distribution (ICO) occurred in 2018, where a total of 736,543,517 NKN tokens (73.65% of the total supply) were sold to the public through a two-phase process:

• Phase 1: 368,271,759 NKN sold at $0.10 per token
• Phase 2: 368,271,758 NKN sold at $0.11 per token

The proceeds from the ICO were primarily used to fund the development of the NKN protocol, team expenses, and marketing efforts.

Lockup and Release Schedule

After the ICO, a lockup period was implemented to prevent early investors from dumping their tokens and destabilizing the market. The release schedule for these locked tokens was as follows:

• 18 Months: 20% of ICO tokens released
• 24 Months: 30% of ICO tokens released
• 36 Months: 50% of ICO tokens released
• 48 Months: 100% of ICO tokens released

This staggered release schedule helped to ensure a gradual distribution of NKN tokens and prevent excessive volatility in the market.

Subsequent Token Issuances

Since the ICO, NKN has not issued any new tokens. The total supply of NKN coins remains at 1,000,000,000, with the distribution remaining the same as the initial allocation.

Importance of Token Issuance in Blockchain Projects

The issuance amount and distribution of tokens play a crucial role in blockchain projects:

• Monetary Policy: The number of tokens in circulation influences the tokenomics and price stability of the cryptocurrency.
• Governance: In proof-of-stake protocols like NKN, token holders have voting rights to participate in network governance. The distribution of tokens affects the power dynamics within the network.
• Incentivization: Tokens are used to incentivize network participants to contribute to the network's security and growth. The number of tokens issued can impact the level of participation and engagement.
• Market Liquidity: The supply and distribution of tokens determine the liquidity of the token in the market, affecting its tradability and price discovery.

Understanding the issuance amount and distribution of NKN coins provides valuable insights into the tokenomics, governance, and future direction of the NKN project.